The Construction Products Association has written to the George Osborne, urging the Chancellor to focus future public spending where it will deliver the most good and support sustained economic growth in the longer-term.
The Emergency Budget will be delivered next Tuesday and the CPA would like to see it:
The CPA believes that construction and product manufacturing will have important parts to play in ensuring long-term economic recovery in the UK, given that they are worth £110 billion each year and account for 9% to GDP.
CPA chief executive Michael Ankers, said: ‘We recognise the need to reduce public borrowing and welcome the urgency with which the government intends to do this. However, the government must ensure that future public spending is focused on delivering economic growth through the provision of essential energy and transport infrastructure, education facilities and housing.
“Where money is spent it needs to deliver the most cost effective solutions, as appropriate capital investment not only stimulates economic recovery in the short-term, but provides a beneficial legacy in the longer-term, by increasing productivity.
“The government must provide incentives to help the creation of a low carbon economy, especially with regard to the energy efficiency of the existing housing stock. We welcome the ‘Green Deal’ and the proposed early legislation to implement this. However, this alone will not be enough. Government currently allows a lower rate of VAT on the professional installation of certain energy-saving products, but this list must be updated to take account of new products and solutions such as energy efficient boilers, glazing systems, water/liquid source heat pumps, solar shading, window films (internal and external), photovoltaics, green roofs, and rainwater harvesting.”